Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich

Saturday, September 29, 2012

Vitus gets A from Prof. Stiglitz

Vitus, in the past, has not bought the meme that the Fed's low interest rates were the, or even a, main cause of the crisis. A cause, sure, but not a main one. Other prominent commentators did/do blame rates, eg, Ritholtz. However, Prof. Stligtz sets us straight: The Fed was one of the main contributors to the crisis. However, it was not via low rates; it was because the Fed did not step up to their job as regulator of last resort.

Vitus is on record (here, here, and, in the innocent, bygone days of Vitus' youth in '08, here,) as saying that EOD, the main cause of the crisis was rampant "free-market" religiosity, which of course is the analog (for you EE types out there) of deregulation.

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